Poker Players Question Allocation Of Funds Seized From Poker Websites

An undercover operation recently conducted by federal agents in Baltimore, Maryland successfully secured indictments against two online gambling companies as well as the seizure of ten domain names and various associated bank accounts. These companies were accused of breaching state and federal laws as they relate to the UIGEA prohibiting the transfer of payments back and forth between Americans and online gambling websites operating outside the U.S. Over the course of the 2-year investigation, federal authorities processed hundreds of thousands of illegal payment transactions netting approximately $33 million.

Soon after the shakedown, federal authorities granted a hefty part of the proceeds from the government seizure to the Anne Arundel County Police Department of Maryland for their assistance in the operation. This event was accompanied by a photograph of smiling officials outside police headquarters with a poster sized cheque in the amount of $470,407.62. An official statement said the money would be used, appropriately enough, for undercover police cars and equipment.

While the allotment of the funds in this case may not be unheard-of, the fanfare surrounding it was uncommon and irritating to many poker players who voiced their opinion that law enforcement officials were keeping the appropriated funds with no regard to the players who felt their money was stolen by these online gambling websites. To some critics, the appropriated funds and the way they were allocated was a crime in itself.

For its part, a spokesman for the U.S. Attorney’s Office in Maryland reasoned proceeds from illegal gambling activities must be relinquished to the government and players should look to the online poker websites for payment of any outstanding money owed to them and not expect reimbursement from the government.